BPCL, HPCL, IOC shares up 5% as oil rally cools on hopes of fresh Iran-US peace talks

Shares of oil marketing companies (OMCs) jumped as much as 5% on Wednesday as renewed hopes of renewed peace talks between Iran and the US kept oil prices comfortably below the key $100 per barrel after earlier rounds failed over the weekend.

Pakistani officials cited by the Associated Press indicated on Tuesday that Islamabad has proposed a second round of talks to the United States and Iran, after US Vice President JD Vance said earlier that there had been “little progress” in talks with Iran and US President Donald Trump said earlier that “we have been called to the other side” and “they are going to ask for a deal.”

Trump hinted at a second round of talks, saying Iran talks in Pakistan ‘could happen in the next couple of days’, Reuters quoted the NY Post as saying. He said Washington was more ‘inclined’ to go to Pakistan for peace talks that could end the nearly seven-week war in the Middle East. After the collapse of the previous round over the weekend, renewed hopes of renewed peace talks boosted investor sentiment.

The Wall Street Journal, citing US officials, reported that more than 20 commercial ships were able to cross the Strait of Hormuz in the past 24 hours. Markets are now pricing in an earlier end to the war in the oil-rich Middle East and a resumption of movement through the Strait of Hormuz.

After a sharp decline overnight, oil futures rose marginally on Wednesday morning. However, they remained comfortably below the crucial $100 per barrel. Brent crude futures were trading near $95 per barrel, while WTI crude futures were at $91 per barrel.

As a result, shares of Bharat Petroleum Corporation (BPCL) rose over 5% to Rs. 307.9, while shares of Hindustan Petroleum Corporation (HPCL) also traded at Rs. It jumped more than 5% to trade at 368. Meanwhile, shares of Indian Oil Corporation (IOC) rose by more than 3%.

Oil prices surpassed the crucial $100 mark in March for the first time since Russia’s invasion of Ukraine in 2022, closing the Strait of Hormuz, and have held at that level for most of the time since. OMC stocks, consequently, fell sharply, as rising oil prices fueled concerns about potential margin pressures.

Shares of oil refiners also remained in the green today amid an overall bullish sentiment in the markets. Shares of Reliance Industries (RIL) rose around 2%, while shares of ONGC were marginally higher. However, Oil India shares fell by 3%.

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